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BTB REIT (TSE:BTB.UN)
:BTB.UN
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BTB REIT
(TSX:BTB.UN)
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Select Model
Rating:76Outperform
Price Target:
C$4.00
▲(3.63% Upside)
BTB REIT's overall stock score reflects strong valuation metrics and solid technical indicators, despite concerns over revenue growth and leverage. The earnings call highlighted both strengths in liquidity and challenges in rental revenue, contributing to a balanced outlook.
Positive Factors
Cash Flow Generation
Strong cash flow generation indicates BTB's ability to efficiently convert income into cash, supporting ongoing operations and potential growth investments.
Portfolio Optimization
Strategic property sales at a profit enhance portfolio quality and financial flexibility, allowing BTB to focus on high-performing assets.
Improved Liquidity
Enhanced liquidity strengthens BTB's financial position, providing a buffer against market volatility and enabling strategic investments.
Negative Factors
High Leverage
High leverage can increase financial risk, potentially impacting BTB's ability to finance operations and growth if not managed prudently.
Declining Occupancy Rates
Falling occupancy rates can reduce rental income and profitability, challenging BTB's revenue stability and requiring strategic tenant acquisition efforts.
Rental Revenue Decline
A decline in rental revenue suggests potential challenges in maintaining income levels, impacting BTB's ability to sustain growth and distributions.
BTB REIT (BTB.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$340.72M
Dividend Yield8.03%
Average Volume (3M)81.96K
Price to Earnings (P/E)9.0
Beta (1Y)0.75
Revenue Growth1.59%
EPS Growth19.74%
CountryCA
Employees81
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.07
Shares Outstanding88,268,680
10 Day Avg. Volume114,478
30 Day Avg. Volume81,956
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.53Price Target Upside-8.55% Downside
Rating ConsensusHold
Number of Analyst Covering2
BTB REIT Business Overview & Revenue Model
Company DescriptionBTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB is an important owner of properties in eastern Canada. As at November 10th, 2020, BTB owns 64 retail, office and industrial properties for a total leasable area of approximately 5.3 million square feet and an approximate total asset value as of September 30th, 2020 of approximately of $946M.
How the Company Makes MoneyBTB REIT generates revenue primarily through the leasing of its real estate properties. The company earns rental income from tenants occupying its office, retail, and industrial spaces. These leases typically include fixed-term agreements with built-in rent escalations, providing a stable and predictable income stream. Additionally, BTB REIT may engage in strategic acquisitions and dispositions of properties to enhance its portfolio value and increase returns. The company also focuses on maintaining high occupancy rates and managing operating costs efficiently to maximize profitability. Partnerships with real estate developers, property managers, and financial institutions may also play a role in its growth and revenue generation strategy.
BTB REIT Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with stable leasing activity, positive cash NOI growth, and improved liquidity, but was overshadowed by significant noncash adjustments impacting rental revenue and occupancy rates.Q2-2025 Updates
Positive Updates
Stable Leasing Activity
Total leasing activity, including new leases and renewals, totaled approximately 173,000 square feet with a 4.7% average rent renewal rate.
Positive Cash NOI Growth
Cash NOI increased by 0.5% compared to the same quarter last year, driven by operating improvements and higher rent renewal rates.
Improved Liquidity Position
Total liquidity improved to $34.2 million, an increase of $16.5 million compared to the end of 2024.
Successful Property Dispositions
Disposed a property in Saskatoon for $6.1 million and another in Quebec City for $10.5 million, achieving a gain of 13% versus book value.
Strong AFFO Payout Ratio
AFFO payout ratio improved to 79.2% for the quarter from 80.2% the previous year.
Negative Updates
Noncash Straight-Line Rent Adjustments
The quarter was negatively impacted by $1.8 million in noncash straight-line rent adjustments, affecting rental revenue and NOI.
Decreased Occupancy Rates
Occupancy rate decreased to 91.2%, a 340 basis point drop compared to the previous year, due to tenant bankruptcies and lease non-renewals.
Rental Revenue Decline
Rental revenue decreased by 5.3% compared to the same quarter last year, although it would have increased by 0.3% excluding straight-line rent adjustments.
Company Guidance
During the BTB Real Estate Investment Trust's Q2 2025 conference call, management provided detailed updates on key metrics and strategic activities. The portfolio remains stable at 6.1 million square feet with a fair value of $1.2 billion. The occupancy rate stood at 91.2%, which would have been 92% post-disposition of a Quebec City property. The office segment decreased from 47% in 2021 to 42%, while industrial holdings increased from 23% to 36%. Geographically, 54% of assets are in Montreal, 21% in Quebec City, and 13% in Ottawa. The quarter saw a lease renewal activity totaling 173,000 square feet, with an average rent renewal rate of 4.7%. The second quarter was impacted by a noncash straight-line adjustment due to a lease renegotiation with Lion Electric, leading to a $1.8 million reduction in rental revenue. Despite a slight decrease in rental revenue by 5.3% compared to the previous year, the AFFO payout ratio improved to 79.2%, and the debt ratio decreased, highlighting BTB's financial resilience and strategic focus on optimizing its portfolio.BTB REIT Financial Statement Overview
Summary
BTB REIT demonstrates solid profitability and cash flow generation, with strong margins and positive free cash flow growth. However, the high debt-to-equity ratio suggests potential leverage risks. The negative revenue growth rate in the TTM period is a concern that needs monitoring.Income Statement
BTB REIT shows a stable gross profit margin around 58% and a consistent net profit margin close to 30% over the TTM period. However, the revenue growth rate has turned negative at -1.29% in the TTM, indicating a potential slowdown in revenue generation. The EBIT and EBITDA margins remain strong, reflecting efficient cost management.75
Positive
Balance Sheet
The company's debt-to-equity ratio is relatively high at 1.49, indicating significant leverage, which could pose risks if not managed properly. Return on equity is modest at 8.03%, suggesting moderate profitability. The equity ratio is stable, indicating a balanced asset structure.68
Positive
Cash Flow
BTB REIT's free cash flow growth rate is positive at 15.07% in the TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is 0.37, and the free cash flow to net income ratio is 1.0, indicating efficient conversion of income into cash.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 130.10M | 130.03M | 127.83M | 119.50M | 100.34M | 92.97M |
| Gross Profit | 74.78M | 75.05M | 75.38M | 70.43M | 56.34M | 51.26M |
| EBITDA | 75.62M | 75.84M | 71.30M | 63.12M | 49.58M | 44.61M |
| Net Income | 38.12M | 38.74M | 36.60M | 38.15M | 17.36M | -22.60M |
Balance Sheet | ||||||
| Total Assets | 1.26B | 1.26B | 1.23B | 1.18B | 1.13B | 926.67M |
| Cash, Cash Equivalents and Short-Term Investments | 5.68M | 2.47M | 912.00K | 2.40M | 7.19M | 9.06M |
| Total Debt | 731.14M | 735.24M | 724.23M | 692.15M | 687.72M | 552.49M |
| Total Liabilities | 766.94M | 761.72M | 749.99M | 717.27M | 725.48M | 584.60M |
| Stockholders Equity | 495.64M | 494.28M | 477.65M | 462.07M | 404.43M | 342.07M |
Cash Flow | ||||||
| Free Cash Flow | 60.91M | 66.00M | 70.80M | 131.95M | 56.34M | 45.97M |
| Operating Cash Flow | 60.91M | 66.00M | 70.85M | 66.24M | 56.54M | 46.15M |
| Investing Cash Flow | -16.97M | -19.58M | -46.38M | -65.71M | -71.73M | 12.13M |
| Financing Cash Flow | -47.26M | -44.87M | -25.96M | 19.48M | 13.32M | -51.02M |
BTB REIT Technical Analysis
Positive
3.86
Price Trends
3.68
Positive
3.60
Positive
3.40
Positive
Market Momentum
0.05
Negative
66.04
Neutral
76.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BTB.UN, the sentiment is Positive. The current price of 3.86 is above the 20-day moving average (MA) of 3.75, above the 50-day MA of 3.68, and above the 200-day MA of 3.40, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 66.04 is Neutral, neither overbought nor oversold. The STOCH value of 76.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BTB.UN.
BTB REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$223.03M | 9.31 | 7.90% | 8.87% | 3.24% | 3.36% | |
79 Outperform | C$395.14M | 14.03 | 5.27% | 7.56% | -0.28% | 206.65% | |
76 Outperform | C$340.72M | 8.98 | 7.80% | 8.03% | 1.59% | 19.74% | |
76 Outperform | C$113.70M | 4.81 | 18.62% | 6.35% | -0.21% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
50 Neutral | C$388.93M | ― | -3.72% | 4.22% | -2.90% | 68.88% |
* Real Estate Sector Average
TSE:BTB.UN
BTB REIT
3.85
0.50
14.93%
TSE:FCD.UN
Firm Capital Property
6.04
0.85
16.38%
TSE:NET.UN
Canadian Net Real Estate Investment Trust Trust Units
5.45
0.21
4.01%
TSE:MRT.UN
Morguard Real Estate ate
5.86
0.60
11.41%
TSE:PRV.UN
PRO Real Estate Investment
5.86
0.62
11.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.